Procore’s revenue and losses both grew in Q3
Carpinteria-based Procore Technologies saw its losses continue to mount but its revenue continue to accelerate when the company released its financial results for the third quarter of 2021 on Nov. 4.
Procore, a construction software management company, had revenue increase 30% year-over-year, to $132 million in the third quarter of 2021, as the company lso added 465 net customers during the period.
Net losses, however, grew more than 200%, for a loss of $50.7 million in the third quarter of 2021, or 58 cents per share, compared to a loss of $15.9 million in the third quarter last year.
For the year, Procore’s net loss is $214.1 million, compared to $48.7 million it had through the first three quarter’s last year.
The growing losses could be due to Procore’s latest pair of acquisitions as well as costs incurred during its initial public offering earlier this year, when it raised more than $500 million.
Procore acquired LevelSet, a New Orleans based construction software management company, during the third quarter for $500 million.
According to Procore, the deal will close in the fourth quarter, and the company expects to recognize at least $1 million in revenue from LevelSet in its fourth quarter earnings.
Procore also acquired LaborChart after the third quarter ended, for an undisclosed amount. The deal is expected to close in 2022.
“Our recent acquisitions to combine project data, workforce data and risk intelligence will ultimately enable us to solve more of our customers’ challenges over time,” Procore CFO Paul Lyandres said in a news release.
Procore’s stock price opened at $96.75 the day after the earnings release on Nov. 5. Shares declined more than 4% over the next few trading days and were hovering above $92 on Nov. 9.
Procore ended the quarter with over $1 billion in cash and cash equivalents with no outstanding debt as of Sept. 30.